Investing.com – Tesla (NASDAQ:) shares accelerated Wednesday after the electric carmaker is reportedly set to raise output at its factory in California, easing fears that demand for its Model 3 vehicle was running out of steam.
Bloomberg reported that Jerome Guillen, Tesla’s automotive president, said in an email to employees that Tesla is “making preparations” to increase production. Tesla (NASDAQ:) rose about 2.8%.
Tesla (NASDAQ:) told investors in April it expected to deliver between 90,000 and 100,000 vehicles in the second quarter of the year, but the company also left the door open to an even higher number of deliveries.
The bullish outlook on production comes as the company delivered record production and deliveries during the second quarter of this year.
The company increased deliveries by 51.1% to 95,200 cars during the three months ending June 30, compared with the first quarter, beating its previous record of 90,700 deliveries set in the fourth quarter of 2018.
The all-important Model 3, the company’s biggest seller, saw deliveries of 77,550 during the quarter, topping analysts’ estimates of 74,100, with some on Wall Street hailing the update as a step in the right direction for the electric automaker.
Tesla (NASDAQ:) is down about 29% for the year so far, after its shares nosedived on the back string of negative analysts’ comments following a weak first quarter.
Tesla is a stock that lately has defined volatility. It was up as much as 81% for the year when it peaked at $387 in June 2017. It’s off nearly 39% since. But the stock appeared to bottom on June 3 at $176.99 and has risen about 33% from that low.